- Prachi Singh |
REPORT_ At the end of three months to November 30, 2014, retail sales at Asos increased over 8 percent with over 24 percent rise in UK but below 2 percent decline in international markets. International retail sales stood at 57 percent of the total business compared to 63 percent last year. Retail gross margin was down 170 bps on prior year.
According to Nick Robertson, CEO, September and October were challenging as the company completed the automation programme in Barnsley in time for peak. “Our sales have since gathered momentum and we had our biggest ever trading week over cyber weekend in November. Our strong UK performance continued however international retail sales declined. International trading conditions remain challenging,” Robertson added.
Asos has commenced investment into its international pricing and started to roll out its zonal pricing capability, which the company expects to help in improving its international performance. “During the quarter, we received 6.3 million pounds (9.8 million dollars) of insurance proceeds related to the fire at Barnsley in June, which we are deploying to accelerate our investment in international pricing. After taking this into account, we expect full year profits to be in line with expectations,” Robertson said.